Endowment plan
Endowments are long-term, regular savings plans with built-in life cover.
NFU Mutual's Endowment is a with-profits investment and so will normally
benefit from the addition of bonuses over time.
Whatever you are saving for, you can start from a minimum premium of
just £20 per month or £200 annual premium - and there is currently
no maximum.
Traditional savings plan
When it comes to making long term savings on a regular basis, traditional
endowment plans remain a popular choice because of the added benefit of
valuable life cover.
At the end of your endowment plan, provided you have paid all your premiums,
you will receive the sum assured plus any bonuses that have been added
over the years, as a lump sum. If you want to cash in your policy early
however, the cash-in value may be less than the total premiums you have
paid in, particularly in the early years.
The lump sum payable depends on our investment performance and our expenses,
so it may be less than you had hoped for.
Built-in life cover
If you die during the term of your plan, the sum assured and any bonuses,
which have been added, will be paid out as a lump sum. You can arrange
your plan to cover the lives of two people if you wish, in which case,
the benefits will normally pay out on the death of the first life assured.
Tax advantages
Currently, the lump sum payable at the end of your plan or upon death
would normally be free of UK Income Tax and Capital Gains Tax. Any liability
to tax is met within the fund itself. This information is based on NFU
Mutual's understanding of current HMRC practice and legislation,
which are subject to change.
Endowment plan frequently asked questions
For other products with a regular savings facility, try our ISAs or Flexibond.
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